1. What are Managed Futures?
Managed futures is the term used to describe investing in the futures markets with the benefit of a professional money manager, called a “Commodity Trading Advisor” (CTA).

2. What is a CTA?
CTAs are typically registered with a national regulatory body, subject to oversight and monitoring by these authorities, and required to provide adequate disclosure to the investor. There are approximately 3,000 CTAs registered in the United States as well as others operating under the regulations of many other countries, including the UK.

3. How do CTAs make profits?
CTAs employ a variety of techniques that have been developed and tested in the marketplace to attempt to achieve profits and minimize risks. CTAs can typically trade on technical indicators (price movement, trading volume, chart patterns, and time series) or on fundamental information (supply and demand data). The quality and results of the many CTAs available in the marketplace vary in a range as great as the number of CTAs themselves.

4. What are typical CTA fees?
The typical CTA fees are expected to be a management fee ranging between 1.5% and 2% per annum and a performance fee ranging between 20% and 25% of any net new profits. The costs are accrued daily, and all CTA results are net of these operating costs.

5. Why invest in Managed Futures?
Over the long term managed futures represents a class of "alternative investments" providing valuable diversification to a traditional portfolio of equities and bonds. Managed futures have been shown to provide returns with little or no relation to the timing and magnitude of the returns associated with traditional securities. (Risk of loss and past performance is not necessarily indicative of future results)

6. How do I participate in Managed Futures?
Most investors have neither the time nor the resources to select a CTA. That is why most investing today in managed futures is done through products and vehicles that are structured to aggregate investor money and delegate advisor selection and monitoring to an experienced managed futures intermediary. This is where PFG’s Managed Futures Division adds value to the managed futures investment process.

7. What is a Managed Futures Account?
A Professionally managed futures account is a discretionary account you give permission to a Commodity Trading Advisor (CTA) to make all trading decisions on your behalf through a revocable power of attorney.

8. Is a managed Futures Account appropriate as a short-term investment?
Quite simply, no. Futures investing is a speculative type of investing, and like most markets tend to be cyclical. Additionally, even the most successful professional traders experience periods of flat returns or even drawdowns. Consequently, losses will be incurred for those trading periods. The wise investor will remain steadfast to his/her investment plan and not close the account prematurely in order to allow the account to recover from those temporary losses in equity. It would not be a wise investment strategy to open an account that you do not intend to maintain for at least 3 years, ideally 5, to benefit from compounded returns for the longer term.

9. Are professionally managed futures for everyone?
No, they are not. We would first provide you with all the necessary information to make sure you understand both the risks and rewards of this type of investing. Generally, in addition to having the required risk capital, an investor needs to have realistic expectations about returns on investment, tolerance to temporary drawdowns that inevitably will occur, and acceptance of the reality that the risk of loss always exists.

10. How can I open an account and how much money should I invest in a Managed Futures Account?
Only risk capital should be used in managed futues or any speculative investment. Risk capital is defined as capital that you do not want to lose, but if you did, your lifestyle would not be affected. We recommend that the amount of money you invest depends on your own temperament, financial goals and risk tolerance and should usually be approximately 5% to 25% of your overall portfolio. Each CTA trading program has different account minimums as detailed in their disclosure documents.

11. What does PFG add to the investment process?
PFG has experienced professionals managing every aspect of the managed futures business. With more than 2,700 futures money manager to choose from in the investment world, it is important that investors place their money with a knowledgeable and experienced organization. It is equally important for investors to have confidence and trust in the track record established by an investment firm as well as in the individual managing their accounts. PFG maintains records on more than 225 futures money managers and 390 programs. We work with only those managers who meet our investment criteria and who have proven themselves capable of managing client assets.

12. How do I find out more?
To request additional information, or to discuss managed futures as an investment alternative, please fill out the Contact Form or call our toll-free number: 1-877-843-4519